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CREDIT REPORTING AND THE CARES ACT

The CARES Act: Mortgage Deferment

 According to the Orlando Sentinel, Tod and Christin Caviness received credit alerts that their credit scores dropped almost 100 points.  The couples’ credit scores dropped after deferring their mortgage.  

The couple’s mortgage deferment was a result of the CARES Act – Coronavirus Aid, Relief, and Economic Security Act. The CARES Act passed in March of 2020 allow people facing economic hardship to defer payments on select loans, such as mortgages. Though the Act contains language to protect consumers’ credit, problems similar to the Caviness’ has been appearing around the country. 

According to the U.S. Public Interest Research Group, there have been 13,000 complaints about credit reporting from April through September – a 550% increase. Consumers should check their credit reports regularly. Due to the pandemic, consumers are now able to check their credit scores once a week using AnnualCreditReport.com.

How to dispute credit report errors?

Under the Fair Credit Reporting Act (FCRA), consumers have the right to dispute credit report errors.  Consumers also have the right to file a lawsuit in federal court when the credit reporting agencies fail to perform a reasonable investigation of your dispute. 

If you find errors on your credit report, then you should dispute credit report errors to the nationwide credit reporting agencies, such as Equifax, Experian, and Trans Union.  

Click here to view a sample dispute letter.

What if the credit bureaus verify false information on my credit report?

If, after a dispute, the credit reporting agencies do not correct the errors, then you should contact an attorney who is experienced in helping consumers with credit report errors.  Under the FCRA, successful consumers may be entitled to money damages, including out-of-pocket expenses and attorneys’ fees if you are successful in a lawsuit.

The Adkins Firm represents consumers with credit report errors.  Have you disputed credit report errors? Have the credit reporting agencies verified false credit report information? If you answered yes, then you should contact us to schedule a free case review.

Remember, it’s your credit report!